Two politicians from Northern Luzon are allegedly “masterminds“ and financiers behind a large-scale manufacturing of an illegal cigarette factory discovered in Mexico, Pampanga, said Interior and Local Government Secretary Jonvic Remulla.
In a report by RH Edniel Parrosa on MBC TV Network News, Remulla made the statement during his inspection of the facility, which was earlier raided by the Philippine National Police (PNP) and the Bureau of Customs (BOC) on January 28.
Authorities arrested six Chinese nationals during the raid. Subsequent inspection by the PNP, DILG, and BOC revealed barracks where workers were allegedly confined and underpaid.
Remulla said intelligence reports point to two incumbent congressmen from Northern Luzon as the suspected “masterminds” of the illegal operation.
More than 60 Filipino workers were reportedly victims of forced labor and human trafficking inside the illegal cigarette factory.
Investigators believe the facility was a major source of smuggled cigarettes sold at extremely low prices, even reaching small neighborhood sari-sari stores.
While Remulla declined to provide further details, he appeared to confirm that sitting lawmakers were involved.
“The entire ecosystems hawak ang entire ecosystems ng illegal tobacco,” Remulla said.
Aside from the alleged political backers, four incorporators of Samyoung Global Corp., the company that leased the land in Barangay Panipuan, are also facing charges. Two of the incorporators are Filipino, while the other two are Korean nationals, all of whom are set to be subpoenaed by the PNP-Criminal Investigation and Detection Group (CIDG).
In addition to charges related to agricultural and cigarette smuggling, the owners are expected to face “human trafficking“ complaints. Authorities likened the conditions to POGO-style operations, where workers were allegedly detained and restricted from leaving the premises.
“Illegally detained. Dito lang sila, hindi sila pinapalabas, pinapakain lang sila. Parang sinabi P15,000 a month tapos may tirahan at pagkain,” Remulla noted.
The factory was reportedly capable of producing up to ₱400 million worth of cigarettes per day, translating to massive revenue losses for the government since it began operating last month.
Investigators said the factory had no permits and was using fake tax stamps. Intelligence reports also linked the cigarettes produced at the site to the same brand involved in multi-billion-peso smuggled tobacco products seized by the Highway Patrol Group in Batangas and Malabon in December 2025.
According to the DILG, at least 10 similar illegal cigarette factories are believed to be operating nationwide.
